ACC: Standard Cover vs CoverPlus Extra

Love it or hate it, ACC levies are all part and parcel of making money!  
But don’t fret, we are here to help guide you and create an ACC world much easier to stomach.

Let’s start with the basics:

Standard ACC Cover

This includes the standard CoverPlus policy which covers self-employed sole traders and partners.  Standard cover also is known as WorkPlace Cover.  This policy is for Shareholders covering non-PAYE shareholder-employees.

  • This type of cover is an automatic policy for self-employed/shareholders and PAYE earners.
  • This cover pays out 80% of your income if you have an accident.
  • You must prove your loss of earnings which can be difficult.
  • Levies are calculated based on your liable earnings.

CoverPlus Extra (CPX)

This type of policy is optional, but displays so many more benefits:

  • You have a Signed Agreement between yourself and ACC at an agreed value.
  • You can choose any level of cover from $35,400.00 to $113,826.00.
  • The cover is 100% guaranteed.
  • You don’t have to prove loss of earnings.
  • You receive the full entitlement until 100% fit.
  • Provides flexibility and certainty.

If you are currently covered by CoverPlus Extra, you should already know how extremely beneficial it is and how proudly its boasts a more streamline claims process, as well as flexibility to choose your own level of cover.  This in turn saves you time, money, and the feeling of satisfaction in knowing you are under the best safety umbrella should an accident occur.

But here’s the catch…

  • If you don’t pay your CoverPlus Extra policy in full or have a payment plan set up before the due date your CoverPlus Extra policy will be automatically cancelled,

This means no overdue notices or pre-warnings. 

  • If your payment plan is set up and you have insufficient funds when the debit occurs, the cancellation will be backdated to the start of the policy year.
  • Reverting to standard cover will mean your levies will instead be generated based on your liable income after your tax return, so a surprise bill might be coming your way!

If your CoverPlus Extra policy does cancel, it doesn’t necessarily mean you don’t have any cover, rather that you will revert to standard cover mentioned above.  This may not provide the same level of certainty at the event of a claim taking place. 

You may reapply for CoverPlus Extra again, but this will mean you go through the full application process which can be costly and time consuming.

If you struggle to remember due dates, ACC offers the following payment options to better align with your budget as well knowing your payments are always on time:

  • 3 or 6 monthly direct debit plan (interest free)
  • One off direct debit plan (on due date)
  • Or a manual payment in full by the due date

It’s important to remember if you like to pay your invoices on the 20th of the month but your CoverPlus Extra is due prior to this there are no exceptions – ACC still require payments by due date otherwise cancellation will occur. If paying by direct debit, we have the option to change the due date to suit you and your budget, so this might suit your situation better.

Every dollar saved is a dollar in your pocket for the fun stuff – so we are all about CPX for eligible candidates. 

Curious? Enquire with our friendly ACC Team today for a free quote and information on how to get your hands on our most recommended ACC policy – CoverPlus Extra. 

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